UK punters 'could sue Sulley '

JOHN Sulley, the former boss of Independent Energy, which collapsed spectacularly three years ago, may face multi-million-pound legal suits for allegedly misleading investors.

The accusations relate to a £100m share offer in March 2000. Sulley and two other IE directors have just agreed to fork out £1.2m as part of a £29m settlement of the claims in the US. This could pave the way for a case to be launched in the UK, according to experts in transatlantic law.

Independent Energy, once worth £1.5bn, plunged into receivership in September 2000 after problems with its billing system prevented it collecting payments from its customers.

US lawyers representing Independent's US shareholders alleged that the directors and the underwriters of the share offering did not adequately disclose the billing problems.

They also alleged that the trio made roughly £18.2m selling shares as part of the offering.

Wall Street investment bank Credit Suisse First Boston, which now owns the lead underwriter of the share issue - Donaldson Lufkin & Jenrette - is bearing the lion's share of the remaining £27.8m of the settlement.

Neither CSFB nor Sulley, who is now head of wind farm developer Warwick Energy, were available for comment. They deny any wrongdoing.